What Is Chapter 7 Bankruptcy?

There are a number of different ways one can file for bankruptcy. A Chapter 7 bankruptcy lawyer Royal Palm Beach is one who can help you through the process. Chapter 7 is a type of bankruptcy that allows a debtor to liquidate their assets, using the proceeds to pay the creditors as much as possible and at the end any remaining debts are discharged which allows the bankrupt person to start fresh. A Chapter 7 bankruptcy lawyer Royal Palm Beach can work with both individuals and businesses, both of which can take advantage of Chapter 7, the most popular form of bankruptcy in the country.

The whole process starts when a number of different papers are filed with a bankruptcy court. The individual or business that wishes to declare Chapter 7 bankruptcy must show that they are not eligible for filing a repayment plan or to reorganize and they must provide the court with a list of all assets. When the documents are reviewed and the court agrees that the debtor can go through a liquidation bankruptcy a meeting is scheduled with all the creditors where a discussion of the liquidation takes place. During this meeting the creditors can agree to take a partial settlement of the debt owing or if they feel the debt was related to a fraudulent activity, they can refuse to settle. Certain debts, student loans being one of them cannot be discharged and must be paid in full.

It usually takes between four to six months for the process to work its way through the courts and the process can become quite involved. Most people who ate declaring will hire a Chapter 7 bankruptcy lawyer Royal Palm Beach to help them. Certain assets are considered to be exempt; this means they cannot be sold as part of the liquidation process. The creditors can decide if other assets have any value or not, if they are declared worthless then they too are declared as exempt. The sale of the remaining assets is conducted by a trustee who attempts to get the best possible prices for the remaining assets.

A part of declaring Chapter 7 bankruptcy is an agreement to attend credit counseling courses. After bankruptcy has been declared by the court it can be very hard to obtain credit for a number of years. The credit counselors offer help to people who are trying to rebuild their credit rating after being declared a bankrupt.

If you are considering filing for bankruptcy you will need a Chapter 7 bankruptcy lawyer in Royal Palm Beach. You are invited to contact the Law offices of Sean I. Koplow.